BHUMI ORGANIC LTD

Executive Summary

Bhumi Organic Ltd is a recently incorporated private limited company currently classified as dormant but exhibiting significant negative equity and creditor balances. These financial indicators point to a high risk of solvency and liquidity challenges, despite compliance with filing obligations. Further investigation is needed to understand the company’s operational status and strategies for addressing its financial deficits.

BHUMI ORGANIC LTD - Analysis Report

Company Number: 14747597

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity risks as evidenced by negative net assets (£-26,003) and current liabilities exceeding cash holdings by a wide margin. The company is newly incorporated and classified as dormant but already reports substantial creditor obligations due after more than one year.

2. Key Concerns:

• Negative Shareholders’ Funds and Net Assets: The company’s equity position is deeply negative, indicating liabilities far exceed assets. This is a strong indicator of insolvency risk.
• High Long-term Creditors: £26,268 owed beyond one year with almost no current assets to support repayment raises questions about how obligations will be met.
• Dormant Status vs. Operational Activity: The company is classified as dormant but reports an employee and creditor balance, suggesting possible discrepancies or future operational challenges.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Clear Ownership and Control: Ownership is transparent with Bhumi Pty Ltd and an individual director holding full control, which may facilitate decision-making.
• Small Company Reporting: The company benefits from simplified reporting standards, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the £26,268 long-term creditors, including whether these are loans from related parties or third-party obligations.
• Clarify the apparent contradiction between dormant classification and the presence of an employee and creditor balances. Confirm actual operational status.
• Review cash flow projections and business plans to assess how the company intends to manage its liabilities and move to positive equity.
• Confirm the completeness and accuracy of financial disclosures given the company’s early stage and unusual financial position.